What are the main challenges when opening a blocked account in Germany?

 Opening a blocked account in Germany presents several challenges for international students and job seekers. Here are the main difficulties faced during this process:

Main Challenges of Opening a Blocked Account

1. High Initial Deposit Requirement :
   • As of September 2024, the required amount to be deposited into a blocked account is  €11,904  for students, which translates to  €992 per month  for living expenses. This substantial upfront financial burden can be a significant challenge for many applicants, especially those without sufficient savings or financial support from family.
2. Limited Banking Options :
   • Not all banks in Germany offer blocked accounts, and some prominent banks, such as Deutsche Bank, have ceased providing this service. This limitation forces applicants to rely on specific providers or intermediaries, which may not always be convenient or straightforward.  Additionally, using foreign banks for this purpose is not permitted, necessitating transfers to German banks, which can further complicate the process.
3. Complex Application Process :
   • The process to open a blocked account involves multiple steps, including gathering necessary documentation (eg, proof of funds, admission letters), completing application forms, and making the initial deposit. Delays can occur due to high application volumes or processing times at banks.
4. Activation Requirements :
   • After arriving in Germany, applicants must activate their blocked account by opening a current account and providing various documents such as proof of residence registration and a residence permit. This additional step can lead to delays in accessing funds.
5. Financial Strain and Limited Options for Funding :
   • Many students may struggle to gather the required funds due to limited access to loans or family support. Taking out loans specifically for the blocked account can lead to financial strain and may not be advisable if it leaves them without sufficient funds for living expenses after arrival in Germany.
6. Time Constraints :
   • The need to open a blocked account before applying for a visa can create time pressure for applicants. Delays in processing the account can lead to complications in meeting visa deadlines or securing a residence permit upon arrival.
7. Regulatory Changes :
   • Frequent updates to the required amounts and regulations surrounding blocked accounts can create confusion among applicants. Keeping up with these changes is essential but can be challenging for those unfamiliar with the system.

These challenges highlight the importance of thorough preparation and understanding of the blocked account process for anyone planning to study or work in Germany.